I have seen the opposite issue too, which is where if someone has sat in a chair in the company for X number of years and isn't terrible at their job, they are

I have seen the opposite issue too, which is where if someone has sat in a chair in the company for X number of years and isn't terrible at their job, they are almost guaranteed advancement. And usually this is a bad recipe for stagnation and you end up with bad middle management (the Loser-Clueleess-Sociopath hierarchy comes to mind). Whereas if you force people to execute a project decently, at least you have the opportunity of those paying off even if most don't; for every 10 failures maybe you get a Google Maps or Google Docs.